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To: Chuzzlewit who wrote (24833)	12/11/1997 4:17:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

Paul, I think these channel problems are at the root of the weakness in CPQ stock. The stock started too diverge from DELL after Ekhard made his "roadmap" speech around November 17. On November 24, I think it was Goldman Sachs dropped their rating on Compaq. My best guess is that the "disapproved dealers" at the end of January will dump their Compaq inventory. The "approved dealers" will be getting a slice of their other retail competitors business and won't protest too much what CPQ is doing to them. The dumping will be confined to the retail channels I believe. Remember that the retail, consumer business is about 20% of CPQ's business. I m going to be following this closely. Regards, Jim Kelley